The Anaerobic Digestion and Biogas Association (ADBA) has proposed the creation of a biomethane-based carbon credit trading platform to support the growth of the anaerobic digestion (AD) industry.
ADBA proposes to create a company to both list and trade biomethane credits (BMCs), which would provide new revenue streams. The ultimate aim would be to achieve regulatory or statutory carbon status for BMCs, allowing them to be delivered as an offset under mandatory trading schemes.
Under the proposals, a regulatory body would electronically provide the gas producer one credit per 5cu m of biomethane gas injected into the National Grid. ADBA believes that companies will want to purchase the credits in order to offer ’green gas tariffs’ to customers.
Chairman Lord Redesdale told MRW: “This is a valuable marketplace and could well gain in value if green gas in the future is used to offset carbon reduction commitment liabilities. This new marketplace will be developed in conjunction with the building of AD plants that inject gas into the grid and will be a valuable element in the profitability of AD.
“The biomethane carbon credit trading platform will give the value of the production of green gas to the producer. The low carbon value of gas derived from AD will be valued through the process by which it is produced. The amount of gas injected into the gas grid will determine the amount of green gas that can be traded. The market for green gas will be for those who wish to buy into the carbon market.”